Prime Minister Narendra Modi on Friday said that the steps taken by the Reserve Bank of India (RBI) will “greatly enhance liquidity” and helps lift the farmers and the poor.
In a Tweet, Modi said, “Today’s announcements by @RBIwill greatly enhance liquidity and improve credit supply. These steps would help our small businesses, MSMEs, farmers and the poor. It will also help all states by increasing WMA limits.”
RBI on Friday cut the repo rate and announced a slew of measures including a re-finance window of Rs 50,000 crore and targeted long term repo auction of a similar amount to deal with the impact of the COVID-19 pandemic. This was announced by RBI Governor, Shaktikanta Das while addressing a digital press conference.
Das assured that the RBI will use all instruments at its disposal to deal with the challenges posed by the outbreak of the novel coronavirus, depending on the evolving situation.
Governor Shaktikanta Das said there are a few slivers of brightness amidst the encircling gloom and hoped that India will stage a sharp V-shaped recovery in 2021-22 as projected by the International Monetary Fund (IMF).
The allowed non-bank financial companies to extend the date for commencement of commercial operations (DCCO) for loans given to commercial real estate by an additional one year without considering it as restructuring.
He said, “It has now been decided to extend similar treatment to loans given by NBFCs to commercial real estate,” RBI Governor Shaktikanta Das said while addressing the media via video conference. The move will provide relief to non-banking financial companies (NBFCs) as well as the real estate sector, he said.
Das said that softening inflation would make available more policy space to the central bank to address risks to the growth going forward.
He further said that by April 10, pre-monsoon Kharif sowing had begun strongly, with acreage of paddy – the principal Kharif crop – up by 37 percent in comparison with the last season.
States such as West Bengal, Telangana, Odisha, Assam, Karnataka, and Chhattisgarh are leading in sowing activity despite the lockdown.